Iberian Banks’ Performance: A Panel Data Analysis

This paper aims to analyze the performance determinants of investment banks in the Iberian Peninsula. To achieve this goal, we have studied 15 Portuguese banks and 53 Spanish banks between 2011 to 2020. To test the hypotheses we have used bank-specific variables and macroeconomic variables through the Generalized Method of Moments (GMM)-system estimation method by [1] and [2]. The results point out that internal determinants are the most important to explain bank performance in both countries. Still, the managers and shareholders have different perceptions depending on the measure of bank performance. To the best of our knowledge, this is the first study to analyze the performance determinants of the Iberian investment banks as a single joint market.